{"id":66540,"date":"2026-08-14T13:08:12","date_gmt":"2026-08-14T17:08:12","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/fed-officials-signal-divergent-paths-as-gdp-forecasts-soften\/66540\/"},"modified":"2026-08-14T13:08:12","modified_gmt":"2026-08-14T17:08:12","slug":"fed-officials-signal-divergent-paths-as-gdp-forecasts-soften","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/fed-officials-signal-divergent-paths-as-gdp-forecasts-soften\/66540\/","title":{"rendered":"Fed Officials Signal Divergent Paths as GDP Forecasts Soften"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>The New York Fed&#39;s Q3 GDP Nowcast was revised down to 2.14%<\/strong> from a previous estimate of <strong>2.24%<\/strong>, reflecting a slight cooling in economic momentum.<\/li>\n<li><strong>Cleveland Fed President Beth Hammack<\/strong> broke from the cautious consensus, calling for <strong>immediate interest rate hikes<\/strong> to combat persistent inflation and robust business borrowing.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold prices<\/a> faced a critical technical test<\/strong>, retreating below the <strong>100-day moving average<\/strong> as traders engaged in profit-taking following a rally to ten-week highs.<\/li>\n<li><strong>Canada expanded its sanctions regime against Iran<\/strong>, targeting five individuals for their roles in obstructing international navigation rights in the <strong>Strait of Hormuz<\/strong>.<\/li>\n<li><strong>The U.S. is prioritizing economic and political pressure on Cuba<\/strong> over military intervention, focusing on intelligence-driven operations to drive internal reforms.<\/li>\n<\/ul>\n<h2>Fed Policy Debate Intensifies Amid Cooling Data<\/h2>\n<p>The Federal Reserve is facing internal friction as policymakers weigh cooling economic data against persistent price pressures. <strong>Chicago Fed President Austan Goolsbee<\/strong> noted on Thursday that while recent inflation data has been &quot;a little better,&quot; he remains focused on seeing more evidence of a sustained cooling trend. <em>Goolsbee expressed hope that as the shocks from tariffs and energy prices recede, inflation will move closer to the 2% target.<\/em><\/p>\n<p>In contrast, <strong>Cleveland Fed President Beth Hammack<\/strong> has emerged as a prominent hawk, advocating for an <strong>immediate rate hike<\/strong>. Hammack argued that the current federal funds rate, sitting between <strong>3.5% and 3.75%<\/strong>, is not &quot;meaningfully restrictive&quot; given the high demand for business investment. <em>Her public dissent highlights a growing divide within the FOMC ahead of the September 16 policy meeting.<\/em><\/p>\n<h2>GDP Growth Projections and Market Reactions<\/h2>\n<p>The <strong>New York Fed&#39;s Staff Nowcast<\/strong> for the third quarter was adjusted to <strong>2.14%<\/strong>, down from <strong>2.24%<\/strong>. This downward revision follows a week of mixed economic signals, including weaker-than-expected nonfarm payroll data. <em>Markets are currently pricing in a roughly 35% to 50% chance of a September rate hike, a significant shift from earlier in the month.<\/em><\/p>\n<p>The precious metals market reflected this uncertainty, with <strong>Gold (<a href=\"\/stock\/GLD\">GLD<\/a>)<\/strong> falling <strong>1.3%<\/strong> on Thursday to test its <strong>100-day moving average<\/strong>. Despite falling Treasury yields and softer <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a>\u2014factors that typically support bullion\u2014gold struggled to maintain its bullish momentum. <em>Analysts suggest that a sustained weekly close above the 100-day moving average is necessary to restore the metal&#39;s upward trajectory.<\/em><\/p>\n<h2>Geopolitical Pressure Ramps Up in Iran and Cuba<\/h2>\n<p>On the international front, <strong>Canada<\/strong> announced new sanctions against five Iranian individuals, including senior officials of the <strong>Islamic Revolutionary Guard Corps (IRGC)<\/strong>. The sanctions are a response to activities that have threatened the <strong>Strait of Hormuz<\/strong>, a critical waterway for global energy security. <strong>Minister of Foreign Affairs Anita Anand<\/strong> emphasized that freedom of navigation is essential to global trade and that Canada will continue to coordinate with G7 partners to counter Iran&#39;s &quot;destabilizing activities.&quot;<\/p>\n<p>Regarding <strong>Cuba<\/strong>, the U.S. administration appears to be doubling down on a strategy of <strong>economic and political attrition<\/strong>. Secretary of State <strong>Marco Rubio<\/strong> indicated that the immediate focus is on eliminating Cuba&#39;s remaining &quot;economic escape valves&quot; through sanctions rather than military action. <em>This approach aims to leverage the island&#39;s deepening fuel and humanitarian crisis to pressure the ruling government into accepting sweeping reforms.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The New York Fed&#39;s Q3 GDP Nowcast was revised down to 2.14% from a previous estimate of 2.24%, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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